KUALA LUMPUR: The proposed Fiscal Responsibility Act (FRA) will send a strong signal to the market and put in place a good governance framework for public finances, says economy minister Rafizi Ramli.
There is a need to regulate how the country would spend money through legislation, which is why the proposed FRA will be tabled in the Dewan Rakyat in the near future, he said.
“The plan and idea for the FRA have always been there. People are talking about it and everyone accepts that governance should not just be talked about but put into a framework.
“It is part and parcel of what we need to do to strengthen the economy,” he told the media after delivering a keynote address at the Association of Chartered Certified Accountants (ACCA) Stakeholders’ Appreciation Reception here last night.
The government’s focus today is mainly based on three areas, which are to strengthen the country’s fiscal position, to increase revenue, and to structure the economy, Rafizi said.
“Our problems in the past were basically how we spent our money. With the FRA, it will harmonise and instil the discipline to guide the whole government machinery at every level,” he added.
Rafizi noted that the finance ministry was responsible for tabling the FRA while his ministry, which manages the development spending, will give input on the proposed bill.
On Feb 24, Prime Minister Anwar Ibrahim, during the tabling of the revised Budget 2023, reaffirmed that the government will be presenting the FRA this year to ensure greater transparency and accountable management of the economy.